Patrick Souiljaert

Here’s my 1st video blog update (and some sit down comedy).

Enjoy!

From: patrick@sussexpatrick.com [mailto:patrick@sussexpatrick.com]
Sent: 08 January 2012 23:25
To: patrick@sussexpatrick.com
Subject: Welcome to My Property Network 8

Hello People

Welcome to the new people I’ve added in the last week to My Property Network (now in excess of 400 members). If you’re not sure who I am, I am the first and only property investor with Cerebral Palsy (www.sussexpatrick.com).

Thank you for your replies to my last update. I appreciate them all and have posted them on my blog http://sussexpatrick.com/2012/01/03/welcome-to-my-property-network-7/#comments

On Wednesday I viewed my 2^nd prop with Paul Howard and Frank Sumner – and made this video

I would like to sincerely thank both Paul and Frank because without their help, I couldn’t do what I am doing. I’m really pleased because Frank says he can replace the bay window for less than Vale Management have quoted and I’ve asked Paul liaise directly with Helen at Vale, to get the work done ASAP. It’s nice to be working with such good people.

This video is just of me walking down the stairs

I knew I could do it because I had done so on two previous occasions. (The first time, I wasn’t focussed because I’d slipped over walking up the path to the prop. The back of my shirt had landed in something I wished it hadn’t! The second time, I spent a couple of minutes figuring out how to do it).

It wasn’t easy – but it was simple. All I did was use the wall as support and took one step at a time. Of course there was a chance I could have fallen down the stairs – but I knew, if I concentrated hard enough, I would not fall.

Paul didn’t realise it but he really helped me. When I want to do something and someone advises me not to, it motivates me even more to do it! I’ve always taken chances in life (but I’m very risk-averse). Over the last 18 months, I’ve learnt that successful people take chances. To me, taking a chance is when you’ve got nothing to lose.

I think everyone should take chances in life because you’ve got nothing to lose.

One of my goals in 2012 is to start joint venturing (JVing) with people. I’m planning to have tea and coffee (I drink both but not at precisely the same time!) with two separate investors in my area this week.

Following on from my previous update:

• My 1^st prop is going to take about another month to fully dry out – and it’s not a problem!
• I’ve given the vendors a deadline, on the 1 bed flat in Bognor, of 5.30 on Tuesday to fully accept my offer.
• As promised, here’s the update on ‘my 3^rd prop’. Please see the email to Whiteheads below.

The only thing to add to it is, about the Excel extract in my email – it comes from my Property Analyser that I’m currently developing. It will contain all of the associated costs and tell you if a potential prop is worth buying. I love Excel. When I was at BT I created lots of Excel macros.

From: ‘Adam Gregg’

Sent: 05 January 2012 10:07
To: patrick@sussexpatrick.com
Subject: RE: Flat C, 4 Linden Road

HI Patrick,

Thank you for your email.

Have spoken to the vendor unfortunately this is unacceptable for them to take £85,000, so I’m sorry to say this one is not going anywhere and I believe that they will stay where they are.

we will keep you informed of anything else that comes on that we think may be suitable.

Kind regards

Adam Gregg
Branch Manager

Whiteheads Group Ltd
70 Waldwick Road, Bognor Regis, West Sussex, PO21 2PE
Tel: 01243 870044 Fax: 01243870077 email:adamg@whiteheadsgroup.co.uk

Disclaimer:  This e-mail from Whiteheads Group Ltd contains information, some or all of which may be confidential and privileged.  If an addressing or transmission error has misdirected this e-mail, please notify the author by replying to this e-mail.  If you are not the intended recipient you must not use, disclose, distribute, copy, print, or rely on this e-mail.  Whiteheads Group Ltd has endeavoured to ensure that this e-mail is free from computer viruses, however, you are advised to carry out your own virus check prior to opening any attachments.  Whiteheads Group Ltd does not accept any liability for any damage sustained as a result of any software viruses following opening of any e-mail or attachments.  This email may be monitored for quality and training purposes, in replying to this message you are giving consent to this.  Important communications should always be followed with a phone call, fax or printed copy by post.

From: patrick@sussexpatrick.com [mailto:patrick@sussexpatrick.com]
Sent: 04 January 2012 22:57
To: ‘Adam Gregg’
Subject: RE: Flat C, 4 Linden Road

Hi Adam

Hope you’re well. I’ve had a long day!

All I can be is honest with you.

I’ve spoken to 5 EAs/surveyors in Bognor. The estimates I now have on Flat C, 4 Linden Road (after a refurb) range from £100K to £110K One guy said he has viewed the prop and it’s in a bad block (I remember seeing a large crack in the communal front door window when I viewed the flat, which may be a tell sign)

Another guy said he read (in the full details of the prop, inaccessible at the mo on http://www.rightmove.co.uk/property-for-sale/property-32223394.html) the remaining lease is 68 years. I think it’s 85 years. Please could you clarify?

Linden Road is at the low end of the PO21 2A’ postcode, when it comes to sold prices (average £93,630). The last recorded sale in the 2AN part of Linden was in 2006

Sold prices of Flat C, 4 Linden Road

27 Jun 2003      £78,000

23 May 2002     £49,000

I’ve done a Rightmove search for 2 bed flats within 0.5 mile of PO21 2AN:

These 2 comps (sold STC) are both ground floor with a garden

http://www.rightmove.co.uk/property-for-sale/property-31537402.html

http://www.rightmove.co.uk/property-for-sale/property-35806751.html

On the market since March http://www.rightmove.co.uk/property-for-sale/property-29262877.html

On the market since May http://www.rightmove.co.uk/property-for-sale/property-33836033.html

With all of the above in mind, my original maximum offer of £85K was about right.

Purchase price	80	85	91
70% mortgage	56	59.5	63.7
Mortgage deposit	24	25.5	27.3
Refurb	5	5	5
Total cash in	29	30.5	32.3
Revaluation	110	110	110
75% remortgage (after refurb)	82.5	82.5	82.5
Cash back from remortgage	26.5	23	18.8
Cash left in	2.5	7.5	13.5

As I am a people-person, I would like to work with you and Whiteheads. However, when it comes to buying props, it needs to be a good enough deal because my analytical side will prevail.

Apologies for any inconvenience caused.

Best regards

Patrick Souiljaert

I am the first property investor with Cerebral Palsy. Follow my journey – www.sussexpatrick.com

Like me, you can achieve anything you want – just take action and stay focused.

From: patrick@sussexpatrick.com [mailto:patrick@sussexpatrick.com]
Sent: 03 January 2012 02:59
To: patrick@sussexpatrick.com
Subject: Welcome to My Property Network 7

Hello humans

Happy New Year to you all!

Welcome to the new people I’ve recently added to My Property Network (now in excess of 400 members). If you’re not sure who I am, I am the first and only property investor with Cerebral Palsy (www.sussexpatrick.com).

I’ve had an action-packed few weeks. I’ve secured the purchase of 2 props in 2 weeks and my first prop (which I completed on in May has been flooded! It’s all good fun!

The flood in my first prop was caused by a bust pipe in the flat above. I haven’t done anything about it myself. Howard & Co www.howardestateagency.co.uk (the best letting agency in Worthing) have sorted it all out. My tenant (and her baby) stayed with her mum for 5 days, whilst the flat dried out. The maintenance company are going to do the required redec work. All I need to do is ensure the work is done properly so I can get the flat re-valued and refinanced.

(The best tenants are people who have got no ambition of owning their own home – because they will treat your property as their own home)

My 2^nd and 3^rd props are going through now.

My 2^nd prop is a 1 bed flat with a yield of over 10%, right by Worthing Station. The flat was due to be sold at auction but I bought the prop beforehand – and I should complete on it on 9 Jan. The flat needs a refurb. It has a big bay window (which was going to need a lot of treatment, due to damp). However the maintenance company have applied for planning consent to replace the window with a new UPVC one. They estimate the window will be replaced at the beginning of Feb but I would like to try and get it done sooner. I like a challenge! All I need to is try and get the planning consent rubberstamped ASAP. Paul Howard is a Worthing Councillor and has said he can help! Thank you Paul – it’s great working with you.

What I haven’t mentioned above is all of the dealings with solicitors, EAs, letting agents, builders, maintenance companies etc.. It goes without saying because we all do it. My point is this, if non-investors were to read what I’ve written they would probably say something like “property investment and owning properties is so difficult. All you get are problems with tenants, damaged properties, having to apply for planning permission…”.

I love property investment, all I see it as is people. The hardest thing I find is viewing a load of props. Everything else is simple and easy. I really like liaising with people – and doing the analytical work.

My 3^rd prop is a 2 bed flat in Bognor town centre (near the station). It’s on the market with Whiteheads (www.whiteheadsestateagents.co.uk), one of the biggest EAs in Bognor and I’ve built a good relationship with them. I was the first person to view the prop when it came onto the market for £100K. The EA said the vendor was very motivated, wanted a quick sale and would accept a low offer. After viewing the prop on a Friday, I started at £70K, and then after the weekend, I told the EA my highest offer was £85K.. The EA came back saying the vendor wanted £94K.

I left it for 2 weeks and phoned the EA and offered £85K again. The EA came back with £90K. At 90K the yield is 9.2%, I thought it’s a bit low but had another look at all of the figures and concluded it was worth buying the prop for £90K:

• I compared the maintenance charge and remaining lease with my 1^st prop (10% yield):

Prop 1 maintenance charge & GR £950

Prop 1 remaining lease 68 years

Prop 3 maintenance charge & GR £546

Prop 3 remaining lease 85 years

• I would like to work with Whiteheads and they have offered me a rental management fee of 7%.
• After the refurb the prop would value up to £125K

On 23 Dec I received an email from Whiteheads, saying the vendor now won’t accept anything less than £91K. This prompted me to have another look at the figures, and another search for comps/sold prices. It appears that £125K is a little optimistic and think what I originally thought about the prop only valuing  up to £110K. Hence I phoned the EA last week and explained my concern. They said they’re going to email me sold comp prices of £125K. I would still like to buy the prop if it will value up to £125K.

I’ve decided to call some surveyors and other EAs I know in Bognor and ask their opinion. I’ll then let Whiteheads know if I still want to proceed with this purchase.

I have had another 1 bed flat, 10% yield offer accepted (through another EA) but the vendors aren’t very motivated to sell (if at all). The vendors are a husband and wife, and a business partner in Majorca. It took them over 3 weeks to make a counter-offer of £62K to my offer of £60K. Hence I offered £61K, waited another 10 days or so and then went with £62K. The EA said “The vendors are very happy accepting your offer of £62K but the business partner is now thinking about buying out the husband and wife.” That was over a month ago. What I’ve decided to do here is, phone the EA and say my offer will only last for another 7 days.

I always say to people that I’m looking for a yield of 10%. There are different ways of calculating yield and I would like to clarify how I do it. Some people include the maintenance charge, ground rent, refurb costs etc. I go by the gross yield hence only use the purchase price and the annual rental income – and there’s a good reason why. I know what the rental rates are in my area so when I’m browsing Rightmove, I can quickly ascertain if a prop is a potential deal. When I find a potential prop, I then phone the EA and ask for more info.

This is how I calculate yield:

(the annual rental income / the purchase price) * 100

My motivation to try to secure 2 props in 2 weeks came after Rob Moore emailed to tell me he had entered me into the Progressive VIP competition. This led me to take massive action and I posted a number of updates, throughout the 2 weeks, (and my competition video) directly on my blog. Go to www.sussexpatrick.com and scroll down a bit!

Many congratulations to Iain Wallis for winning the competition – you are a worthy winner. Iain is going to buy a BTL prop and donate the proceeds to Cancer Research (in memory of his sister-in-law). I would also like to thank all of the people who voted for me.

When someone issues me with a challenge and a deadline – I go for it!

My updates always seem to end up longer than I intended! I’m going to write another update to run through the figures on my 3^rd prop and whether I decide to buy it. I’ll also outline my plan for 2012.

Other blog updates in the pipeline:

• Another one on Mindset (I love mindset stuff!)
• A blog inspired by the Wealth & Lifestyle weekend I recently attended.

Thank you for reading!

Best regards

Patrick Souiljaert

I am the first property investor with Cerebral Palsy. Follow my journey – www.sussexpatrick.com

Like me, you can achieve anything you want – just take action and stay focused.